The Misery Index is 5.5% today. Historically, when the Misery Index has been this low, the S&P 500 P/E has ranged from about 15x to 35x with many instances of 25x and above. The all-time low of the Misery Index from 1960 through September 2017 was February 1966 at 5.28%. The all-time high was in 1975 at 18.56%.

A year ago, the Misery Index was 6.74%. The index is down roughly -18% in the past twelve months and the S&P 500 is up 21%. For now, the index is low and continues to decline which is constructive for further stock price advances. In the coming months, it will be interesting to see if the Misery Index is able to drop to new all-time lows.

Nasdaq, S&P 500 Make It Seven In A Row; Netflix Jumps On UBS Note

IBD has this – “When it comes to overall market health, what’s interesting to note is that the market has moved from a high distribution-day count in the S&P 500 and Nasdaq and overall healthy action in leading growth stocks to a low distribution-day count and suspect action in some leading growth stocks. Many leaders are still acting fine, while others have turned sluggish.”

It has to be of note Ladies and Gentlemen, fellow travelers that we have had 46 bullish weeks so far – NASDAQ has had 21+ %, DOW – 18.6 %, and S&P has had 15 % return

About 65% of market is moving above their 75 day Moving average!!

the famous DOJI occurred on June 12th 2017 – nothing but the the first candle in the first chart – then look at the trend!! Weekly is amazing

Now we know that price is the true north star. We react to the market – we let market show us in 2 charts what is going on. We don’t predict. We buy when the market is going up and sell when when market is going down. Period!

So i am on the long! there is a clear break to the upside occurred at the end of Sept 2017.